Promoting Learning Networks For Small Business: How Can Group Learning Facilitate Change?

Abstract

Learning organisations are characterised by both intra-organisational learning and interorganisational learning. Lundvall's (1992) work on organisational innovation proposes that innovation, or change, is a cumulative process which builds on existing knowledge and practices through interactive learning. Change originates within the organisation, with the proviso that the change may be internal to a network of organisations, rather than a single organisation. Organisations which adapt and change as a result of interactive learning activities are learning organisations. On-going, lifelong learning has been shown to promote responsiveness, flexibility and an ability to make successful changes among farm managers. Individual farms have small workforces, with consequently limited opportunities for interactive learning within the 'institution'. This is reflected in the amount of change occurring in single and dual operator family farm businesses. These small businesses, which comprise 74% of all Australian farm businesses, are less likely to make changes to farming practices than those with larger management teams, according to results of a survey of 2500 farm businesses presented in this paper. Unlike in Europe, there is very little trade protection for Australian agricultural businesses. Agriculture is a significant contributor to the Australian economy, producing 29% of exports. Both industry leaders and government recognise that farm businesses must be flexible and adaptable in order to manage the risks of climate and changes in global markets, and for Australian agriculture to be internationally competitive. Organised learning 'events', such as seminars, conferences, courses and field days, are a way of fostering learning 'networks' of small business managers. By developing 'learning networks', increasing participation in organised 'learning events' will improve the performance of businesses by promoting the ability to make appropriate change in their managers. This paper uses data from a large study of Australian farm businesses to describe the organised 'learning events' in which their managers choose to participate. These data are supplemented by data from two interview surveys of participants in a number of types of organised 'learning events'. The paper explores the role of interaction between participants, and with 'expert' facilitators, in learning process which leads to changes to management practices. Given the conclusion that group learning networks are effective in promoting successful change for small business, the paper concludes with a discussion of industry and government responses to research on the impact of education and training on farm business performance and further policy implications